A Technical Lesson from JToma

ajamesGeneral Comments, Jeff Tomasulo's Blogs3 Comments

News of lower than expected jobless claims resulted in a quick pre-market spike then sell-off in SPY today. However, on the open it rallied and proceeded to break through the 95.50 resistance level (peaking at 96.11) in the early afternoon. As the end of the trading session neared, sentiment reversed and SPY sold off hard into the close, finishing at … Read More

Learning to Take Pain

gmanGilbert Mendez's (Gman's) Blogs12 Comments

In our training program we (over)emphasize finding opportunities where the risk is one unit and the reward is at least five units. Most of the setups our new traders learn (50% I would guesstimate) are opportunities where the risk is literally one to two pennies. If overly abused, these setups can progressively hinder the ability of the trader to pull … Read More

Trade on the Open: MCD

BellaMike Bellafiore's (Bella's) Blogs3 Comments

We teach our desk not to fade weak stocks.  But there are plays on the Open that look like the stock is weak.  Actually they are not.  And these plays are given the green light to fade.  We had such a setup in MCD on the Open.  Let’s discuss. MCD opened near 58.33, could not hold and traded lower.  MCD … Read More

The Week That Was: June 1 – 7, 2009

GualbertoGeneral CommentsLeave a Comment

The SPY traded in a pretty tight range this week, not trading much below 93 or above 95.50.  Again, we were looking for that catalyst to push us one way or the other, and I thought we were going to get it Friday morning with the much better than expected non-farm payroll number.  We’ll see this week if Friday’s weakness … Read More